Social Sharing

Wave of media mergers signals major shift in TV landscape

Gone are the days that you turn to your TV to watch your favourite shows, all on demand. With streaming services accessible on the go, the cable industry is in decline, but media partnerships between traditional cable providers and content makers is changing the game.

Social Sharing

A federal judge has approved the $85 billion mega-merger of AT&T and Time Warner in June, potentially ushering in a wave of media consolidation while shaping how much consumers pay for streaming TV and movies. (AP Photo/Richard Drew)

Listen14:17

As content becomes more on-demand and on the go, thanks to streaming services like Netflix, Hulu, and CraveTV, media companies are fighting over who will create and own the content.

According to an online survey by Canadian Internet Registration Authority, over 70 per cent of Canadians with home internet subscribe to a streaming video service.

That's four per cent higher than the projected 10.2 million traditional TV subscriptions in Canada.

"The key shift we've seen here is the importance of owning the customer and owning the customer data. In a broadcast world that just isn't that important, because you're sending the same thing to everyone." said Smith.

Michael D. Smith (Carnegie Mellon)

More data, less privacy

Consumers are winning the deal of on-demand content and personalization, but media companies have enormous data about consumers' taste and viewing habits.

Content creators know what you'll like based on your precise watching history.

Smith sees this as a necessary model for businesses to thrive in the new internet-driven market.

"In an on-demand streaming world, you've got to know who your customer is so you can know exactly what content to promote to them," he said.

Of course, more data also means higher risks of data breaches, explained Telang.

"It's not a matter of if, it's just a question of when it will be breached. It's part of the next life, where data is an asset, where data will be utilised, and some of the consequences of that will be born for both the consumers and firms."

Popular Now

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.